Posted by Jon on Jun 6, 2010 in
Serious Business The other day I received an email from one of my competitors offering their customers a chance to win a prize with every order they place. At first it may sound like a perfectly reasonable promotion to run, but upon closer inspection it's actually illegal!
In order for a contest to not be considered an illegal lottery, there are three important words that must appear: NO PURCHASE NECESSARY.
There are three components to an illegal lottery: chance, consideration, and a prize. If only two elements exist, you have a perfectly legal contest. If all three exist, you are breaking federal gambling laws! I'll break down each piece:
Chance: If a contest is not skill-based, it falls into the category of chance.
Consideration: This basically means an entry fee. If there is a cost to enter the contest, then consideration exists. A postage stamp, for example, is not consideration. Requiring the customer to purchase a product, on the other hand, is a good example of consideration.
Prize: Without a prize you probably wouldn't have a contest.
This is why most contests you see advertised have fine print that instructs you to send a self-addressed stamped envelope for a free entry. If you run a contest, make sure you do the same!
Tags: chance, consideration, contest, illegal, lottery, prize
Posted by Jon on Jan 9, 2010 in
Serious Business YOU HAVE TO CALL RIGHT NOW!
Funny thing, I didn't call now… but the commercial came on again the following week. False advertising perhaps? Also related, "Quantities Are Limited" and "This Is A Limited Time Offer".
NEW AND IMPROVED!
If it's new, there's nothing to improve upon. If it's improved… then it's just a different version of something that already exists. So it can be one, or the other — but not both!
PAYDAY LOANS & CAR TITLE LOANS
They make it sound like they're empowering people. But how is giving someone a loan at a usurious interest rate empowering? Avoid these like the plague!
Tags: commercial, hype, marketing, payday loans
Posted by Jon on Nov 9, 2009 in
Serious Business In a rough economy like today's, a strong customer retention strategy is important for any e-commerce business to thrive. It is far more costly to obtain a new customer through advertising than to market to an existing customer. Yet so many companies make simple mistakes that cost them several customers each day. Before you spend a dime on advertising, keep in mind these three popular ways of scaring your customers away:
Method #1: Don't Reply To Their E-Mails
When a customer e-mails your company, an opportunity is born. You have a chance to quickly respond to your customer and help them with something. Yet many online merchants seem to ignore this. While perusing the customer feedback profiles of several of my competitors, this was the number one customer complaint, hands down. People were upset that their e-mails were not answered in a timely manner, or even answered at all. What's the point of even being in business if you're going to ignore the people who keep you in business?
Method #2: Take Your Time Delivering the Goods
When a customer places an order, a fast turnaround time is critical. If you take too long to get them what they paid for, do you really expect them to hurry back to your store? If you don't act quick to get your customers their products, they won't be acting quick to do business with you anytime in the near future. Once again, this is something that's extremely basic, but often forgotten by many merchants.
Method #3: Misinform Your Customers
Too many merchants have no idea about how merchants' liability works. If you ship a product to your customer and it is lost in the mail, the customer has every right to call their credit card company and do a chargeback. Too many chargebacks, and you risk losing your merchant account, or being hit with stiff penalties. Many merchants tell their customers that they're responsible for purchasing insurance. This is a huge scam. The buyer is never liable for undelivered goods when paying with a credit card. eBay has even made it a listing violation to ask your customers to purchase insurance. This is the seller's responsibility; it always has been and it always will be. If you want to scare off customers, tell them they're fully liable for any lost shipments if they don't purchase insurance. As customers become savvier, they will not put up with companies who try to get away with this practice.
Good Communication Is Important
Good communication, fast turnaround time, and honest business practices are the lifeblood of any business. If you want to guarantee that your competition gets the share of the market that could have been yours, just follow the three methods in this article and you'll be out of business in no time at all!
Tags: communication, customers, e-commerce, service
Posted by Jon on Jul 2, 2009 in
Serious Business I've been using American Express for many years now. Their rewards program is one of the best – you can redeem your rewards points for many items, including Dell certificates. I have used these certificates to save a lot of money on purchasing new computers and accessories over the years. I recently redeemed my points for a $100 gift certificate to use on a Radeon X1550 video card. Unfortunately, after spending two entire days trying to get the card to work, I didn't have much luck.
After calling Dell I was told that I would need to pay a $50 diagnostics fee in order for them to assist, since my system was no longer under warranty. I have purchased several computers from Dell in the last decade, and have never called them for tech support once, but a policy's a policy I suppose. I opted to return the video card to them instead of paying an extra $50.
Today I checked my credit card statement and saw I was refunded $27. The cost of the video card was originally $127, but I had used a $100 gift certificate toward it. After calling Dell they told me that the gift certificate could not be re-used or re-issued, and that I needed to contact Amex for a new one. I called Amex and they told me the exact opposite – that they purchase these certificates from Dell, and that Dell needs to give me a new one.
At this point I was rather furious. I called Dell a second time, and once again was told the same thing. The gift certificate is gone, and they won't allow me to re-use it or give me a new one. Now I was steaming. I called Amex again, and talked to another representative. I told him the entire situation, and this time around he told me that they'd issue me a new gift certificate! Even though Dell was passing the buck, American Express went out of their way to uphold their reputation. While it wasn't Amex's fault, the fact that they made good really impresses me.
After redeeming this replacement certificate, I do not plan on doing any more business with Dell. It is a shame that they'd rather lose a lifelong customer instead of making good on a gift certificate. If only Dell could take a cue from American Express – and treat their customers with the same respect!
Tags: american express, credit card, dell, fail
Posted by Jon on Apr 20, 2009 in
Serious Business After joining eBay ten years ago (to this exact day, strangely enough) I finally earned my green star today. Over 5,000 positive feedback!
I'm hoping to earn a shooting star sometime sooner than a decade from now…
Tags: ebay, feedback, star
Posted by Jon on Jan 16, 2009 in
Serious Business Every now and then, when I tell people what I do for a living I am asked "how can I do that too?" Usually I can't offer much more than a shrug, but perhaps I can answer it with another question: "Is the lifestyle best suited to you?" Being self-employed has many benefits, but also requires many sacrifices.
You are your own boss. There's no manager prodding you, but it's up to you to manage your time and create opportunities. You won't always know exactly what needs to be done. Being a good problem-solver is incredibly important.
You can pick your own hours. You can plan your work around your day, instead of the other way around. If an emergency comes up, you don't need to ask for time off, or fear negative marks on your record. However, discipline is needed to ensure that any work actually gets done.
You create your own paycheck. Depending on your industry, there can be a whole lot of income potential. Instead of getting a salary, though, your sales are your lifeblood. Your income may vary from month to month. It's not a steady paycheck. Sometimes the cash flow is great, and other times you may be in a crunch. Being able to make it though the tough times, not unlike those present today, is part of the job description of an entrepreneur.
It's a different lifestyle. It's up to you to decide how you want to manage the mix of your business and personal life. Be prepared to deal with being asked why you don't get a real job. Many won't take you seriously at first, but if you stay with it, longevity will become credibility.
You don't need a college degree. Don't be fooled, though. Education is incredibly important. You need to know your industry. You need to know the basics about business management, taxes, and legal issues. While college courses can offer this information, they won't prepare you for what you will face being your own boss, though. College is an incredibly good way to prepare for employment, but that is where it ends. In order to succeed in business you need to take the proper steps necessary to educate yourself. Learn about your industry, and about entrepreneurship in general. Even if you have a college degree, it won't do you any good unless you continue to stay on top of your trade. The internet holds a wealth of information; use it to your advantage.
On a related note, one of my college professors once admitted to the entire class that everything he learned in college a couple of decades ago is now completely obsolete. You can't make this stuff up!
Tags: benefits, college, job, sacrifices, self employment
Posted by Jon on Aug 9, 2008 in
Serious Business I do a lot of international business online. A LOT. Every now and then, an overseas customer comes along and asks me to forge an invoice to save him a few bucks in duty taxes. While this hasn't happened as much as it used to a few years ago, it still happens. Maybe they don't know any better, but it still makes my head spin.
While it may be true that this is not often prosecuted, it's still mail fraud. I like running a legitimate business, and not having to worry about being investigated for federal crimes. It's a bit upsetting to know that so many online merchants actually do this to please the customer, but at least I know I'm doing the right thing.
I like this store's customs declaration policy:
http://www.artofadornment.ca/catalog/shipping/
We CANNOT declare the value of the parcel contents on the Customs form as less than the actual item value for two reasons:
1.) It is illegal.
2.) The parcel is insured for the value declared. This means that if your parcel got lost we could only reimburse you for the amount declared on the Customs form. Example: if your item was valued at $100 and we declared it as worth $20, we could only give you a $20 refund since that is the amount Canada Post will reimburse (theoretically, if we refunded you the full $100 and only got $20 back from Canada Post, we would be paying Canada Post $80 for inconveniencing both of us). We would much rather declare the full amount so your purchase is covered!
The fact that other businesses may lie to Customs for you does not concern us (we will not "jump off a bridge" because another store did). It is not a fair and legal business practice.
eBay has been forced to take an aggressive stance against mail fraud as well:
Postal administrations in several international countries have contacted the United States Postal Service about the declaration of value placed on customs forms. They have noted that in many cases, the declared value is understated when compared to the actual invoice or known value of the item, especially for sales conducted over the internet.
While this applies to sellers both on and off eBay, the USPS has asked us to remind our sellers to declare the proper value on all customs forms.
The correct value of each item is required on customs forms as it helps determine the proper duties and taxes, and whether they should be applied. Some countries will soon begin taking steps to address this issue, such as levying fines on the addressee when the declared value is
determined to be lower than the invoice.
To make sure you're complying with international regulations, please make sure the stated value on your customs declaration is supported by your invoices or other documentation.
Tags: customs, e-commerce, ebay, law, mail fraud
Posted by Jon on Jul 28, 2008 in
Serious Business For the last several weeks I have been noticing calls on my phone from "Unavailable" coming up while I was sleeping on an almost daily basis. The caller did not leave a message during any of the many times this happened. I was just about to go to bed and my phone rang… it was them!
I picked up the phone and was greeted by an employee who was obviously reading from a script, talking at a mile a minute, slurring her words. I was half asleep, and it sounded like she was asking me to confirm some information about my Discover merchant account, and that a packet of information would be mailed out to me.
She started reading me terms and conditions as fast as possible, and as incomprehensible as possible. Eventually I thought I heard something about a fee. HOLD IT RIGHT THERE. Can you please repeat that, because you were talking way too fast? She apologized for talking fast and then read it again, just as fast. I asked her straight out if I'm going to be charged anything and she explains (a bit slower this time) that there is a $49.95 enrollment fee for a premium services package. Knowing that I definitely don't need this, I stopped her right there and told her to please not make any more sales calls to me ever again.
If you work in sales, there are some simple lessons that can be learned from this:
1.) Don't talk so damn fast!
2.) Try to sound like a human, not a robot reading a script!
3.) If you are going to sell me something, and don't do #1 and #2, even if I actually do need your product the answer is probably going to be NO!
4.) If you call me over twenty times, don't leave a message, and continue to call again, you're not going to be dealing with a receptive customer!
It's no wonder these types of jobs are becoming more susceptible to offshoring.
UPDATE: It turns out this was one of their "business partners" that called me. I called up Discover and requested that they refrain from sending me third-party solicitations.
Tags: discover, fail, merchant, telemarketing
Posted by Jon on Jul 27, 2008 in
Serious Business What is entrepreneurship? In the traditional sense of the word, it is starting your own business; creating something out of nothing. To me it's more than that, though. When most people think of an entrepreneur they think of someone in a suit and tie, perhaps in an office board meeting. In my little world, that's not what it means to be an entrepreneur.
To me, being an entrepreneur is about freedom. It's about not having to wake up to an alarm clock. It's about wearing whatever you feel like, not an uncomfortable suit and tie. It's about being your own boss, creating your own rules, and owning your own time. It's about planning your work around your day, instead of planning your day around your work. And most of all, it's about having the power to make your dreams come true.
When I was 12, I started my first business, writing a newsletter and selling copies for a quarter each. I was ridiculed by many of my classmates, but all the while I was gaining valuable business experience while enjoying my work.
At the age of 17 I watched a video that would change my outlook on careers completely. I learned how time is our most valuable resource, and that most of the population trades their time for money in order to make a living. This barter of time for dollars has its limits, as there are only so many hours in a day. Only by creating leverage from other people's time and talent can one escape this "rat race" and transcend the time-for-money mentality.
After turning 20 I soon became financially independent and dropped out of college to be an entrepreneur full-time. I received a lot of criticism from friends and family for making this choice, but it did not stop me from trying to achieve my dreams.
Now I'm 26 and it's hard to imagine what the future will hold. A few short years ago I ran around trying to preach to the world the advantages of being an entrepreneur, only to be ignored by most. Now I sit quietly watching the world go by, and think to myself that I must have done something right to get to where I am today.
Tags: business, dreams, entrepreneurship, freedom, thoughts